Shares of REVG are at all-time lows and seem to have a favorable risk/reward ratio.
It's trading at about 14x 2017 earnings, and under 10x estimated 2018 earnings. They also have a 100% beat record (over 5 quarters as public company), so estimates may be conservative and imply an even greater value. The PEG ratio is a mere 0.4.
Revenues are growing at about 16-17% y/y, and the balance sheet looks good, as debts are manageable and assets are growing consistently. It's trading at about 1.9x book value, which has grown about 20% since going public.
It pays a modest dividend of 20 cents annually, and the payout ratio of 24% has plenty of room to grow. It's yielding about 1.2% at current prices.
This is a consumer play, which given strong jobs, earnings, and spending growth, should benefit in the months ahead.
I already own shares and calls, and I'll be adding as prices warrant. Earnings are due out on June 6, so that could act as a catalyst to push shares higher. I should also note that short interest has increased about 3% over the past month, with nearly 13% of shares currently held short. A positive earnings report could spur short covering, as well as raises in future earnings, both of which potentially fueling a further rally higher.
It's trading at about 14x 2017 earnings, and under 10x estimated 2018 earnings. They also have a 100% beat record (over 5 quarters as public company), so estimates may be conservative and imply an even greater value. The PEG ratio is a mere 0.4.
Revenues are growing at about 16-17% y/y, and the balance sheet looks good, as debts are manageable and assets are growing consistently. It's trading at about 1.9x book value, which has grown about 20% since going public.
It pays a modest dividend of 20 cents annually, and the payout ratio of 24% has plenty of room to grow. It's yielding about 1.2% at current prices.
This is a consumer play, which given strong jobs, earnings, and spending growth, should benefit in the months ahead.
I already own shares and calls, and I'll be adding as prices warrant. Earnings are due out on June 6, so that could act as a catalyst to push shares higher. I should also note that short interest has increased about 3% over the past month, with nearly 13% of shares currently held short. A positive earnings report could spur short covering, as well as raises in future earnings, both of which potentially fueling a further rally higher.
Comment:
Oh, and I also meant to point out that there has been some insider buying, most notable the CEO buying 100,000 shares in early March for an average cost of $22.53, which equals over $2.2 million. I think it's fair to say he thinks shares are undervalued!